Unemployment rate dips to 6% in October

The unemployment rate in October 2014 has declined to 6 percent from 6.4 percent in the same month last year and from 6.7 percent last July. The Philippine Statistics Authority (PSA) reported that the National Capital Region (NCR), Ilocos Region, Central Luzon, and CALABARZON had unemployment rates higher than the national figure.

The decline in the country’s unemployment rate in October – a period that saw the economy create around 388,000 jobs – isn't reason for the government to congratulate itself. Economic Planning Secretary Arsenio Balisacan said the lower jobless rate would have been better if it were accompanied by a similar decline in the underemployment rate. But it wasn't and, in fact, underemployment rose to 18.7% in October compared with 18.3% in July.

"Challenges to uplift the quality of employment across sectors remain. Hence, the government needs to sustain the implementation of multidimensional approach to raise investments, particularly in the rural areas, and improve productivity as well as income per capita in the country," says Balisacan.

Availability of temporary jobs is typically high in the last few months of the year as factories build up inventory ahead of Christmas.

Among the unemployed persons in October 2014, 65.2 percent were males. Of the total unemployed, the age group 15 to 24 years comprised 49.4 percent, while the age group 25 to 34, 30.2 percent.

By educational attainment, 21.6 percent of the unemployed were college graduates, 13.5 percent were college undergraduates, and 33.3 percent were high school graduates .

The employment rate in October 2014 was estimated at 94 percent, slightly higher than the unemployment rate in October 2013 at 93.6 percent.

The PSA noted that NCR, Ilocos Region, Central Luzon and CALABARZON had employment rates lower than the national figure.

The labor force participation rate (LFPR) in October 2014 was estimated at 64.3 percent, up from the October 2013 level estimated at 63.9 percent.

Workers in the services sector continued to comprise the largest proportion of the population who are employed, comprising 53.7 percent of the total employed in October 2014.

The PSA said that workers in the agriculture sector comprised the second largest group making up 30.8 percent of the total employed in October 2014, while workers in the industry sector made up the smallest group registering 15.6 percent of the total employed.

Among the occupation groups, the laborers and unskilled workers remained the largest group making up 31.9 percent of the total employed in October 2014.

The wage and salary workers made up 58.1 percent of the total employed, with those working in private establishments continuing to account for the largest percentage of up 45 percent.

The second largest class of workers were the self-employed making up 28.2 percent of the total employed in October 2014.

Of the total employed persons in October 2014, 63.7 percent were full- time workers, while 35.4 percent were part-time workers.

In October 2014, the underemployment rate, which is the percentage of the underemployed to the total employed was estimated at 18.7 percent.

The PSA said that underemployed persons who work less than 40 hours a week accounted for 57.0 percent of the total underemployed in October 2014.